Wednesday, 11 August 2010

Word of the Day: Stocks

Explanation: A stock is simply a paper document or a certificate that shows, you own a small part or percentage of a particular company. These stocks are bought and sold through stock exchanges such as the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).

The BSE and the NSE are the two main stock exchanges in India and most of the stock trading activity in the country happens through these two exchanges. Any company can raise capital by issuing stocks in the public domain. For a company to be able to issue stocks, they must be a publicly listed company, registered with any recognized stock exchange, besides other listing requirements.

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